Payday loans are very popular for people who need money quickly but also plan on repaying the loan quickly. Generally, a payday loan is easy to apply for and receive. Do you have bad or poor credit? Do you have a poor borrowing history? When you apply for a payday loan, you will find that you are much more likely to be approved than most loans. The interest is much higher than longer loans due to various factors such as speed and risk. Here are the top four reasons why someone may apply for a payday loan.
1. Mortgage Payments
Falling behind on your mortgage payment has devastating consequences. Your mortgage company reports to the major credit agencies. When you make late payments, miss payments, or fall behind, it can negatively impact your credit score. They will report delinquent payments. After missing a set number of payments, your mortgage company can also put your home in foreclosure.
Your house is not just a place you live, but a place you cherish, filled with memories of your loved ones. When the mortgage is due and you do not have the funds, what can you do? A payday loan is a great option. Instead of falling behind, you can quickly get the funds needed to pay your mortgage on time. It will alleviate your stress, knowing you will not be late and your mortgage company will not report delinquent payments to the major credit agencies.
2. Medical Emergency
You may pay your bills every month and on time. However, while you make payments on time, you may not have a lot left over in savings. When a medical emergency arises, it can be very expensive whether you need a tooth pulled or end up in a larger accident. The medical facility may request immediate payment or send you a bill after treatment. Once you see the bill, you may start to panic knowing you do not have the savings to pay it. You can easily apply for a payday loan. The payday loan companies will get you your money quickly so you can pay your medical bills.
3. Car Payments
Payday loans are a great option to make one or more car payments. You rely on your vehicle to get to and from work, transport children, and run errands. If you cannot make your car payments on time, the lender may repossess your vehicle. Without a car, you can no longer work and get paid. It creates a snowball effect. Instead, you can get a fast and easy payday loan, pay your car payment, and live without fear that you will wake up to your vehicle being towed away.
4. Overdraft Fees
Overdraft fees add up quickly. At some financial institutions, they continue to add overdraft fees every few days until you pay off your balance. Instead of letting overdraft fees collect, you can use a payday loan to pay off the entire balance. Once your account balance is at zero, you will no longer have to worry about your direct deposit paychecks being taken due to the negative balance.